The Power of AI in Digital Marketing: 4 Ways to Boost Your ROI

Artificial intelligence (AI) is a technology that enables machines to learn from data and perform tasks that normally require human intelligence. AI has been transforming various industries and business functions, including marketing.

Marketing is one of the domains where AI can contribute the most value, according to a 2018 McKinsey analysis of more than 400 advanced use cases¹. AI can help marketers improve their return on investment (ROI) by making their marketing more efficient, effective and personalized.

Here are some of the ways AI can help in digital marketing:

Targeted Marketing

One of the key benefits of AI is its ability to analyze large amounts of data and identify patterns, trends and insights. This can help marketers segment their customers based on their behavior, preferences and needs, and target them with relevant and timely messages.

AI can also help marketers optimize their ad campaigns by choosing the best platforms, channels, formats and content for each audience segment. For example, an online furniture retailer called Wayfair uses AI to determine which customers are most likely to be persuadable and, on the basis of their browsing histories, choose products to show them.

Personalized Marketing

Another benefit of AI is its ability to create personalized experiences for each customer. AI can help marketers tailor their products, services, offers and recommendations to suit each customer’s needs and preferences.

AI can also help marketers create personalized content that resonates with each customer. For example, Netflix uses AI to generate personalized movie recommendations based on each user’s viewing history and preferences.

Predictive Marketing

A third benefit of AI is its ability to make accurate predictions based on data. AI can help marketers forecast customer behavior, demand, sales and revenue, and adjust their strategies accordingly.

AI can also help marketers anticipate customer needs and wants, and provide solutions before they ask for them. For example, Amazon uses AI to predict what products customers might want to buy next and suggest them through email or on its website

Creative Marketing

A fourth benefit of AI is its ability to generate creative content that can attract and engage customers. AI can help marketers create catchy headlines, slogans, logos, images and videos that can capture customer attention and interest.

AI can also help marketers test and optimize their creative content by measuring its performance and impact. For example, Google uses AI to create dynamic ads that change based on the context and the user.

Conclusion

AI is transforming the future of digital marketing by helping marketers improve their efficiency, effectiveness and personalization. AI can help marketers target their customers with relevant messages, personalize their experiences, predict their behavior and needs, and generate creative content.

By leveraging AI in digital marketing, marketers can gain a competitive edge and deliver better value to their customers.